As part of its diversification program, Saudi Oger Limited has enlarged its operations to reach the utilities sector with a long-term goal of becoming a leading regional independent power and water producer.

Since it was established, the Company's involvement in the water sector has been directly positioned towards the Operation and Maintenance of both private and public utilities comprising desalination by reverse osmosis potable water treatment plants, municipal and industrial waste water treatment plants, potable and sewage water networks, sea water cooling systems, well water operation and maintenance, landscaping, irrigation and associated distribution networks.

Saudi Oger, in conjunction with International Power of the UK, was awarded a contract by Saudi Aramco involving the development of four Electrical Power and Steam Cogeneration Plants with a combined total capacity of 1,063 MW of electricity and four million lbs. of steam per hour at Uthmaniyah, Shedgum, and Juaymah Gas Plants, and Ras Tanura Refinery in Saudi Arabia. All of these plants are now commissioned since 2006 and are operated and maintained by Tihama Power Generation Co. Ltd. ( a company jointly owned by International Power and Saudi Oger Ltd.), for a period of 20 years on a BOOT basis.

In 2012 International Power (owned 70% by GDF SUEZ) and Saudi Oger signed an Energy Conversion Agreements (ECAs) for an expansion of their joint venture's Tihama power plants in the Kingdom of Saudi Arabia, following an award from Saudi Arabian Oil Company (Saudi Aramco).

The expansion of 536 MW and 868 tons/hr of steam at three of Tihama's four sites - Ju'aymah, Shedgum and Uthmaniyah - will be backed by long-term ECAs through to 2026.

Engineering, Procurement and Construction will be carried out by Hyundai Heavy Industries of South Korea and General Electric will supply the gas turbines. Importantly, the technology to be used for the expansion will ensure additional power output with lower carbon footprint. Construction at all three sites is expected to start in May 2012 with a phased commencement of commercial operations between December 2014 and April 2015.

Location

Type of Plant

Involvement

Juaymah

305-MW + 1.25 million lbs of steam/hr

Co-developer and 40% ownership

Ras Tanura

148-MW + 645000 lbs of steam/hr

Co-developer and 40% ownership

Shedgum

305-MW + 1.25 million lbs of steam/hr

Co-developer and 40% ownership

Uthmaniya

305-MW + 1.25 million lbs of steam/hr

Co-developer and 40% ownership

Saudi Oger is also operating, maintaining and/or developing various types of projects in the water sector for both private and public utilities as follows:

Desalination plants

Potable water treatment plants

Sanitary and industrial waste water treatment plants

Sea water cooling systems

Well water operations

Irrigation and associated distribution networks.

And recently the Jordanian government has awarded two contracts to Saudi Oger Ltd to build a 50 megawatt (MW) solar plant in the kingdom.

Additionally, the company is pursuing other major water projects in the Middle East Region, in the role of Investor/ Co-Developer, in conjunction with several reputable international companies. Saudi Oger has also pre-qualified with International consortium partners for a number of major IWPP projects in Saudi Arabia.